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g "Marty's Metal Shop uses a job order cost system. It applies overhead to jobs at a rate of 175% of direct labor costs. Job No. 2617 required $800 in direct labor costs. The job was initially budgeted to require $850 in direct labor costs. Overhead applied to Job No. 2617 during the period amounted to:"

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Answer:

Allocated MOH= $1,400

Explanation:

Giving the following information:

Predetermined overhead rate=175% of direct labor costs

Job No. 2617:

Actual direct labor= $800

To calculate the allocated overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.75*800

Allocated MOH= $1,400

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